THE LAW ALLOWS MATERIAL SUPPLIERS TO LIMIT A BUYER'S REMEDIES, BUT CAREFUL CONTRACT DRAFTING IS REQUIRED
Although in our litigation experience it is not typical for someone to assert that a contractor's contract to "furnish and install" is subject to the Uniform Commercial Code ("UCC") governing sales of goods, we have seen lawyers do it. Significant consequences can flow from the legal conclusion that a contract is governed by the UCC rather than by common law contract rules. For example, the standard for whether a contract has been breached is different under the UCC than it is under the common law, and the UCC implies into contracts (reads into contracts) warranties that the common law does not (and vice versa). So, a party vying for an advantage (to the disadvantage of the other party) in a breach of contract action might assert that the contract is subject to the UCC. Read More . . .
Disputes involving the purchase and sale of materials and equipment will usually be governed by the terms of the purchase and sale agreement and the law applicable to the sale of goods. In this article, aspects of the important "express warranty" are reviewed. Read More . . .
Warranty law is important to both sellers and buyers. Suppliers of construction materials may be held liable under a warranty theory, while the contractors who purchase construction materials may believe the materials they purchased were defective and, therefore, want due compensation from the seller (or other party in the distribution chain). The outcome of such warranty claims depend upon a variety of factors, including the type of product at issue, the damage sustained, the law applicable to the transaction, and the terms of the agreement. While the following case did not involve construction materials, it nevertheless is instructive on some warranty issues. Read On . . .